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NETAR: Pending sales contracts still on record pace

Hank Hayes • Updated Aug 31, 2017 at 12:18 PM

GRAY — New accepted home sales contracts continued at a record pace in July, according to a report released Wednesday by the Northeast Tennessee Association of Realtors.

NETAR’s Pending Sales Report and data from Realtor Property Resource said there were 785 new contracts on single-family resales accepted in July, compared to 786 in June. Adding offers that have not closed brought the July total to 1,100, up 90 from June. Pending sales typically move to closing in a month to six weeks, and it’s normal for up to 4 percent of them to fall through, according to NETAR.

“We’ve seen the number of single-family, townhome and condominium with accepted offers increase at the rate of 700-plus a month since March,” said NETAR President Eric Kistner.

Kistner noted the active pending sales inventory is now at a 13-month high — 21 percent higher than it was last year.

“The rate those offers have moved to closing has slowed in the past couple months due to several factors,” he explained. Some of those factors include more contingency offers, appraisal delays and the sheer number of deals in the pipeline. And then there are the new regulations that have slowed down what used to be the normal process, he added.

Year-to-date data show new pending sales are 10.2 percent higher than the first seven months of last year while the total active pending sales count is up 7.3 percent.

“When you compare that to the new listing trend, you quickly see that the sales pace continues to exceed the number of new listings coming on to the market, and that has driven prices higher,” Kistner pointed out.

During the first seven months of this year, the average listing price has increased from $218,606 last year to $238,638, up 9.2 percent. The median listing price — the point where half of the listings are higher and half are lower — has increased to $166,771 from $155,995, up 6.9 percent.

In July, the 11-county region monitored by the NETAR Trends Report has 4.3 months of inventory. Six months is typically used to describe normal housing market conditions.

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